-- CIBC Capital Markets maintained its outperformer rating on the shares of Celestica (CLS.TO, CLS) and raised its price target to US$425 from US$360 ahead of its first-quarter financial results.
The bank said it continues to view management's guidance and current FactSet consensus for Q1 and 2026 "as conservative," reflecting improved visibility into capital expenditure plans at key hyperscalers (GOOGL, META, AMZN) and OpenAI. It noted that results have exceeded consensus by an average of about 5% on revenue and about 10% on earnings per share since March 2022.
It also noted that the 2025 results were about 20% higher than the initial outlook provided in October 2024. CIBC said recent announcements suggest this trend has continued and is pulling forward customer demand from 2027 into 2026, supporting its positive thesis.
CIBC's updated price target is based on a blended valuation of 32x its 2027 EPS estimate and 24x its 2027 EBITDA estimate.
"We believe this change is supported by improved visibility and is broadly consistent with higher networking and EMS peer valuations," said analyst Todd Coupland. "We raised our target multiples for Celestica to reflect improved visibility to upward revisions in AI datacentre capex spending from significantly improved model performance."
(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)
Price: $532.84, Change: $+27.72, Percent Change: +5.49%